Setting up creditor garnishments

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Our Support department is closed on Friday, April 28th for a company event. However, limited Accounting CS phone support is available on that date from 9 AM - 5 PM ET due to the approaching deadline for quarterly payroll tax forms.

Links to our most popular payroll tax processing topics are available in the Alerts and notices section on the right side of most pages.

To set up an employee with a creditor garnishment and have the application make the appropriate calculations during payroll check entry, follow these steps.

See also: Garnishment overview

Creating creditor garnishment payroll items

The first step is to create a payroll item for the client to use for employees with creditor garnishments.

  1. Add a new deduction item for the client.

    Note: We recommend that you do not enter an agent in this section. You will select the appropriate agents when you add creditor garnishment order information for the employee.

  2. In the Special Type section of the Main tab of the Payroll Items screen, choose the Garnishment option and select Creditor garnishment from the drop-down list.

    Special type Creditor garnishment
  3. Click Enter to save your changes

Adding the new deduction item to the employee record

  1. In the Setup > Employees > Payroll Items tab, make the new garnishment deduction item active for the employee by marking its checkbox in the Deductions grid.
  2. Click the Ellipsis button button for the new deduction item.
  3. Enter or select the appropriate information in the Creditor Garnishment Orders section of the Main tab of the Employee Payroll Item Settings dialog.

    Creditor garnishment grid
    • Case Identifier. (Required) Enter the case identification number. 
    • Order date. You can enter the date on which the order was issued.  This field is not mandatory, but it is used to determine the priority of multiple garnishments when needed.
    • Order State. Select the state in which the order was issued.
    • Agent. You can use this field to assign a payroll agent to the creditor garnishment order to use for generating liabilities. The vendors listed in the Agent drop-down list are vendors that are set up with the Payroll Agent vendor type in the Setup > Vendors screen.
    • Percent or Amount. Specify the percent or the amount that is to be deducted per paycheck.
    • Total Order amount. You can use this field to specify a perpetual limit for the case. If you leave this field at its default $0.00 amount, the application will assume that the garnishment has no limit.
  4. Save the employee payroll item information.

Limits

Limits are restricted by the Consumer Credit Protection Act (CCPA)

Creditor garnishments are calculated as the lesser of:

Related topics

Garnishment overview

Setting up vendors

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